Two More Charts

Here are two charts I alluded to in Friday’s newsletter. The first shows the recent plunge in the two-year Treasury yield (the red line). I think this highlights the market’s view that higher rates may not come until later 2015, or even early 2016. I included the one-year yield (blue line) for comparison.

The second chart shows the falloff in the five-year “breakeven” rate. In simpler terms, inflation expectations have fallen a great deal in the last four months.

Posted by on October 20th, 2014 at 11:20 am


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